Sales Tax

On June 21, 2018 the Supreme Court of the United States broadened the authority
for states to impose sales tax collection requirements on out-of-state vendors
in South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018). As a result, NASCOOP
customers may be subject to increased incidence of sales tax collection if the
laws of their taxing jurisdiction require it. NASCOOP is currently working with
its software developer to improve its ability to comply with the Wayfair
decision and its state-by-state impacts. NASCOOP believes that states will use
their broadened authority to aggressively pursue additional tax revenue.
Therefore we intend to implement all required sales tax collection procedures
as soon as our software system can be configured for those processes. In the
interim, NASCOOP requests that its customers provide exemption certificates to
document exempt sales or remit use
tax on any taxable sales on which NASCOOP does not collect tax. Acceptable
certificates include those issued by the customer’s state, Streamlined Sales Tax Governing
Board, or Multistate Tax Commission. For sales tax purposes, sales are sourced to the
shipping destination of the product and the sale is subject to the sales tax
laws and rates applicable at that location. Accordingly, customers with
operations in multiple states will need to submit certificates for each
shipping address at which they receive delivery of products from NASCOOP.

In response to the Wayfair decision, multiple states have already begun
broadening the scope of their sales tax collection requirements and enforcement
activities. NASCOOP urges its customers to submit exemption
certificates as quickly as possible. If NASCOOP is audited by any taxing jurisdiction in the
interim, NASCOOP will be compelled to issue invoices to customers in order to
collect sales tax for any sales that have not been documented as exempt. The
Wayfair decision’s effects will become more evident as states impose additional
collection rules and interstate sellers are forced to comply with new
requirements. Much of the media coverage around the case has been focused on
its application to internet sales. However, the case will impact the sales tax
compliance requirements for many other transactions, regardless of how they
originate. If you have any question or need any further information regarding
sales tax and NASCOOP, please contact either Bob Bedard or Chuck Kinsey.